TMI Blog2017 (2) TMI 1235X X X X Extracts X X X X X X X X Extracts X X X X ..... and there was nothing on record to show that in furnishing its return of income, the assessee had either concealed its income or had furnished any inaccurate particulars of income. No infirmity in the impugned order of the ld. CIT(Appeals) cancelling the penalty imposed by the Assessing Officer under section 271(1)(c) - Decided in favour of assessee. - I.T.(SS)A. No. 31/Kol/2014, C.O. No. 29/Kol/2014 - - - Dated:- 3-2-2017 - P.M. Jagtap (Accountant Member) And S. S. Viswanethra Ravi (Judicial Member) For the Department : Anand Kumar Kedia, CIT, D.R. For the Assessee : K. K. Chhaparia, F.C.A. ORDER This appeal is preferred by the Revenue against the order of the ld. Commissioner of Income Tax (Appeals), Central-II, Kolk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, the ld. CIT(Appeals) regarded the share trading loss shown by the assessee as a genuine loss. He, however, upheld the order of the Assessing Officer in treating the said loss as speculation loss as per Explanation to Section 73 and consequently not entitled for set off against other income. Thereafter notice under section 271(1)(c) was issued by the Assessing Officer to the assessee and since the explanation offered by the assessee in response to the said notice was not found acceptable by him, the Assessing Officer imposed penalty of ₹ 45,23,466/- under section 271(1)(c) being 100% of the tax sought to be evaded by the assessee by wrongly claiming the set off of share trading loss to that extent, which was treated as speculative i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry those companies were not available on the addresses provided on the sale bills. As mentioned above, aggrieved by the action of the As the appellant company filed an appeal before the CIT(A). In his order, the CIT(A) confirmed the action of the AO treating the share trading loss as deemed speculation loss. However, the view regarding ingenuity of share trading loss was not upheld for the reason that all the companies from whom shares were purchased by the appellant company were assessed to tax and filing their return of income. Their PAN were mentioned on the sale bills issued by them and that subsequently the shares purchased from those three companies were sold by the appellant company through National Stock Exchange through registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the loss from non- speculative to speculative loss. However, the facts remains that the appellant had incurred loss in share transactions was reflected in the P L A/c and in the course of assessment proceedings the appellant submitted the details with reference to aforesaid loss . In support of his decision to cancel the penalty imposed by the Assessing Officer under section 271(1)(c), the ld. CIT(Appeals), inter alia, relied on the decision of the Hon ble Supreme Court in the case of CIT -vs.- Reliance Petro Products Pvt. Limited [322 ITR 158]; Hon ble Madhya Pradesh High Court in the case of CIT -vs.- SPK Steels Pvt. Limited [270 ITR 156]; and Hon ble Delhi High Court in the case of CIT -vs.- Bhartesh Jain [323 ITR 358]. Aggrieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Assessing Officer under section 271(1)(c). In one of such cases, namely CIT -vs.- SPK Steels Pvt. Limited [270 ITR 156 (M.P.)], it was held by the Hon ble Madhya Pradesh High Court that penalty under section 271(1)(c) was not exigible in respect of disallowance of assessee s claim for set off of share trading loss by treating the same as speculative in nature as per Explanation to Section 73 on the basis of preliminary details furnished by the assessee alongwith the return of income as the assessee could not be said to have filed inaccurate particulars or concealed particulars of his income, which was chargeable to tax. 7. In the case of CIT -vs.- Auric Investment Securities Limited [310 ITR 121 (Delhi)] before the Hon ble De ..... X X X X Extracts X X X X X X X X Extracts X X X X
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